Professional Documents
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All in All
All in All
INTRODUCTION
1.1 Background:
Nowadays, people are becoming more aware about the importance of education. Due
to this reason, many schools and colleges are emerging every day. Among the various
universities governing the colleges, Tribhuvan University (T.U.) is the largest and
oldest university of Nepal. With the increasing demand of the Management studies,
T.U. has gradually prepared an innovative course in order to originate the competent
professionals with the changing demands of corporate world since 2002 A.D. Among
different management courses of T.U., Bachelor in Business Administration (BBA) is
one of the best management courses.
Bachelor in Business Administration (BBA) is the semester wise academic program
for management students designed to provide comprehensive and practical education.
The charm of BBA is increasing because it is accepted world wide as it covers the
International standard of four years (one hundred and twenty credit hours).
As per the requirement of Faculty of Management (FOM) of Tribhuvan University,
students of BBA should perform internship in any organization for eight weeks, as a
partial fulfillment of program. The FOM, Tribhuvan University has its ultimate
objective of educating students for professional pursuits in business, industry and
government. It is further dedicated to contributing for increasing the knowledge and
understanding of business and public administration. Accordingly, FOM has been
developing networks with management institutes in the country and abroad to
exchange new knowledge, technology and methods for achieving higher level of
efficiency in management education. For a developing country like Nepal, it is more
meaningful to have commercial banks as lending financial institution to guide the
economy in a desired level.
With the view to achieve same objective, FOM has introduced BBA program. The
specific objectives of the BBA program are to:
The teaching methodology of the program has focused on preparing us to face the
challenges emerging out of the changing business environment. In order to achieve
the aforementioned objectives, the teaching pedagogy of the program consisted case
studies, practical exercises, lab works, project works, field visits, etc. throughout the
program period and an internship for the period of eight weeks in an organization at
the end of final semester. An internship is an extensive program through which an
intern can learn the practical aspects of what is taught between the four walls of a
classroom. The BBA program has incorporated eight weeks internship program with a
view to develop students skill in object-oriented business management, capable of
understanding and solving real life business related problems. It provides practical
exposure and helps the student to understand corporate social responsibility, develop
corporate attitude and venture entrepreneurship.
To know whether various theoretical tools and techniques learnt in college can
To study and analyze the working system of various departments of the bank.
To know about the customers responses towards the services provided by the
bank.
To learn through observation and work experience in the organization to
Placement
During internship period, Internee was placed at Seepadole Branch of NIBL. The sum of
period of internship was 8 weeks. During the period, internee was placed at customer service
department, marketing department and at back office. Internee was placed at CSD for the
period of 5 weeks, at marketing department for the period of 2 weeks and at back office 1
week. The following table shows the department of placement and respective supervisor of
the department:
SUPERVISORS
CUSTOMER SERVICE
Mandira Malla
MARKETING
Sachin Baidya
BACK OFFICE
Sushila Basel
The above table shows the placement of internee in Seepadole branch and also shows the
respective supervisors of concern department.
1.4.3
Duration
As per the course study of the Tribhuvan University, Faculty of Management for
BBA, the student of BBA 8th semester must do the internship of 8 weeks of working at
an organization. Internee got an opportunity to work in CSD, marketing department
and back office of seepadole branch of NIBL, from May 30, 2011 to July 25, 2011
which really helped him to develop managerial and interpersonal skills and at the
same time boost up his confidence level. These eight weeks has been very fruitful for
him to get insight of the banking activities of the organization. The duration of his
internship has been split into various departments as follows:
Table 1.2: Duration of Internship
WEEKS
CSD
MARKETING
BACK OFFICE
The above table shows the duration of internship at Seepadole Branch and duration of
internee works at certain department.
1.
2.
3.
4.
5.
Finally, this report is prepared on the basis of available data, practical day to day
operations and information provided by the bank and its staffs.
CHAPTER TWO
AN INTRODUCTION TO BANKING INDUSTRY
2.1 Meaning of Bank
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Banking sector plays an important role in the economic development of the country.
The word Bank has been derived from the Italian word Banca which means a place
for keeping, lending and exchanging money. The bank is a financial institution, which
deals with money. It accepts deposits from individuals and organizations and grants
loans to them. It allows interest on the deposits made and charges interest on the loans
granted. Since, it accepts deposits and grants loans, it is regarded as the trader of
money. Further, it creates credit and supports for the formation of capital and hence it
is regarded as manufacturer of money.
The following are some of the main definitions given by different economists:
Bank is an organization established for the purpose of exchange money deposit
lending money and participation in transactions
-Commercial Bank Act of 2031 (Nepal)
Bank is an institution which collects money from those who have it to spare and who
are saving it out of their income and lends this money out to those who require it.
Crowther
By the above definition we can be clear that bank is the financial institution, which
accepts deposits from the public in different accounts and grants loans to individuals
and corporations against their securities. The major source of income for the bank is
the difference in interest rate on lending and deposit, interest rate spread, the lending
interest is higher than the deposit interest. So we can consider the financial institution
is the agent of the clients, which remits money, collects incomes and pays expenses on
behalf of them. It provides the wide variety of function on the behalf of the customer.
The banking functions were in use even in the second millennium in Babylonia but
the deposits were not of money but of cattle, grain or crops and eventually precious
metals. Nevertheless, some of the basic concepts underlying in todays banking
system were present in the ancient arrangements. Deposits were accepted, loans were
made and borrowers paid interest to the lenders.
Similar type of banking arrangements could be found in ancient Egypt. These
arrangements stemmed from the requirement that grain harvests be stored in
centralized state warehouse, and the depositors could use written orders for the use of
certain quantity of grains as means of payment. Bankers and moneylenders operated
in India during the Vedic period. Those were the earliest form of banking. Banking
was organized as it passed through several developmental stages.
The history of modern banks starts from the establishment of the bank of Venice,
established in Venice, Italy in 1157 AD. Subsequently, Bank of Barcelona (1401) and
Bank of Geneva (1407), Bank of Amsterdam (1607) and bank of Hamburg (1619)
were established. The Bank of England, first English bank, was established in 1964
A.D. The bank of Hindustan established in 1770 A.D. is regarded as the first bank in
India. But these banks were not established according to the law. In 1833 A.D.,
Banking Act-1833 was introduced in United Kingdom which allowed opening Joint
stock company banks. With the expansion of the commercial activities in the northern
Europe, there sprang a number of private banking houses in Europe and slowly spread
throughout the world.
caste who were involved in money lending business at that time named as TankaDhari during the primeministership of Rannodip Singh.Likewise, Tejarath Adda was
established as the first financial institution of the country. At the beginning only
government staffs were allowed to take loans at 5 % interest rates and latter on public
were also allowed to take loan at the same interest rate against the gold and silver
securities. Taksar Bivag was also established since 1989. Our oldest bank is Nepal
Bank Ltd. established in 1994 BS. 30th Kartik. After that so many banks were
established. Nepal Rastra Bank was established in the year 2012 as a central bank of
the country. Rastriya Banijya Bank, another commercial bank was established in
2022. Only after 2041 B.S, Nepal government allowed joint venture banks to operate
in the country.
Then came board of joint venture public limited commercial banks in the country. At
present the banking sector is more liberalised and there are various types of bank
working in the modern banking system. All financial institution are regulated by
NRB. The list of Banks and Non-bank Financial Institutions licensed by NRB at
present are presented in the following table:
Table 2.1: List of Banks and Non-bank Financial Institutions
As of Mid-July 2011 (Licensed by NRB)
S.N
Organizations
Number
Commercial Bank
31
Development Bank
87
Finance Companies
79
21
16
38
Central Bank
Commercial Bank
10
Industrial Bank
Agricultural Development Bank
Rural Development Bank
Saving Bank
Exchange Bank
Universal Bank
Accepting deposits
Advancing loans
Transfer of money
Miscellaneous functions
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CHAPTER THREE
INTRODUCTION OF AN ORGANIZATION
3.1 AN OVERVIEW OF NIBL
Nepal Investment Bank Limited (NIBL), previously Nepal Indosuez Bank Ltd. Was
established in 1986 as a joint venture between Nepalese and French partners. The
French partner (holding 50%of the capital of NIBL) was credit Agricole Indosuez. A
subsidiary of one of the largest banking groups in the world. The bank started its
banking services from Magh 6, 2042 after registration in the company act, 2021 and
Nepal Banijya bank act 2031 on 6 th Magh 2042 B.S. With the collaboration of foreign
technology and investment the bank is established to provide the banking service in
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different parts of the country. There was a contract made between Rastriya Banijya
Bank, Rastriya Bema Sansthan and foreign investor credit Agricole Indosuez from
France. In the contract it was stated that for the 10 years from the starting of the bank,
Credit Agricole Indosuez would handle by the management. With the decision of
Credit Agricole Indosuez to divest a group of companies of bankers, professionals,
industrialists and businessmen, on April 2002 acquired the 50% shareholding of
Credit Agricole Indosuez in Nepal Indosuez Bank Ltd.
The name of the bank subsequently changed to Nepal Investment Bank Ltd. upon
approval of banks annual general meeting. NIBL, is managed by the team of
experienced bankers and professional having proven track record. So, it can offer
customers what they are looking for. The choice of the bank will be guided among
others by its reliability and professionalism. The fact of professionalism is reflected
by the fact that the Banker of London-based Financial Times Group has awarded
NIBL with THE BANK OF THE YEAR 2003. Besides, NIBL won the same award
in the year 2005,2008 and 2010 as well. NIBL was selected for this honor amongst the
Nepali banks for meeting the benchmark criteria set by The Banker. The award is
based on growth and performance of capital, assets, and return on equity and
management quality. The prestigious award is the first occasion that a 100% Nepali
managed bank has won. The reliability of the bank is reflected by its operation in the
field. It is established to provide the banking service in different parts of the country.
Customer satisfaction is the paramount driver at NIBL.NIBL provides 365 days
banking services.
NIBL, at present is a Company listed on the Nepal Stock Exchange. But its shares are
held by different parties. The shareholdings of the bank at present are as follows:
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Organized Institution
20%
15%
15%
To leverage our technology platform and pen scalable systems to achieve costeffective operations, efficient MIS, improved delivery capability and high
service standards
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To continue to develop products and services that reduce our cost of funds
Saving A/C
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There are different types of saving a/c offered by NIBL. The interest rate of different
a/c varies which is presented in the following table:
Table 3.2: Deposit Interest Rates
Saving Accounts
Savings
Ezee Savings
Saving Bonanza
% per annum
4.50 - 6.00
5.00
6.50
The above table shows the interest rates of different saving a/c.
Different saving a/c offered by NIBL are as described below:
Free eBanking
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in the profits of the account. NIBL invite all such organization to join hands with bank
in this noble cause. Eligibility for opening this a/c are:
Privilege Lounge
Free eBanking
Free issuance of VISA Electron Debit Card valid in Nepal and India
Accidental Insurance
Visa electron debit card @ NPR 250.00 per annum, valid in Nepal and India
No maintenance charge
Visa electron debit card @ NPR 250.00 per annum, valid in Nepal and India
ABBS facility
No maintenance charge
NPR 100 contribution from the bank as soon as the account is opened.
Saving Bonanza
This is a saving a/c which require minimum balance of NPR 100,000 to open .This
a/c offer interest of 6.5% p.a. on daily balance. The feature of this a/c are as
follows:
Privilege Lounge
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Free Utility Payment for Nepal Telecom Pre-Paid Recharge, Post Paid/PSTN
Bills, Schools. ISPs, Cable networks, Insurance & Yeti Air eTicket
Accidental Insurance
Lotus Saving
Visa electron debit card @ NPR 250.00 per annum, valid in Nepal and India
ABBS facility
No maintenance charge
Visa electron debit card @ NPR 250.00 per annum valid in Nepal and India
ABBS facility
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Parents/guardian is to have an account with NIBL and from their account the
money will be transferred to this account through Standing Instruction.
Free ABBS
eBanking service
Fixed Deposit
Prime (%)
1 month
6.00
3 months
6.50
6 months
7.00
1 year
7.50
2 years
8.00
Above 2 years
8.50
Special Deposit Account
10.00
NIBL Special Fixed Deposit
11.00
20
Others (%)
5.50
6.00
6.50
7.00
7.50
8.00
9.00
10.50
11.50
11.00
The above table shows the interest rate of fixed deposit a/c which varies according to the
maturity period.
Current A/C
Current A/C also termed as the Demand Deposit is maintained by the customers who
requires the money frequently. The balance in this A/C is non productive for the bank
since, it cannot be utilized. So, the bank does not provide interest in this A/C. Current
a/c in NIBL is mostly maintained by business enterprises. The minimum balance to be
maintained in this a/c is Rs.5, 000.
Credits:
A contractual agreement which a borrower receives something of value now and agrees to
repay the lenders at some later date. Any time when an individual finances something with a
loan (such as an automobile or a house), they are using credit in that situation. The various
loan provided by NIBL are as follows:
Home Loan
Vehicle Loan
Education Loan
Loan against gold and silver
Bank overdraft
There are other types of products too which the bank provides. They are as follows:
Cash withdrawal
Fast Cash
Statement request
Cheque pad request
Mini Statement
Balance Inquiry
Utility payment
Pin Change
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Fund transfer
NIBL has 67 ATM in different part of the country which accepts VISA and VISA
ELECTRON cards.
ATM locations of NIBL: See Annex: V
Department
Operation Department
Cash Department
Retail Marketing Dept.
Credit Dept.
Back Office
Customer Service Dept.
Head
Bidur Thapa
Nina Dhaubanjar
Sachin Baidya
Sulav Dhoj Khand Thakuri
Sushila Basel
Mandira Malla
CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE
AND PROBLEM SOLVED
As an organization has several departments, NIBL has also various departments and
the activities are performed respectively according to their nature and function.
During internship period internee got an opportunity to work on various department of
NIBL, but this report basically focuses on the CSD of NIBL Seepadole Branch.
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the existing customers are intended by CSD. Hence, all the activities of CSD are
directed towards customer satisfaction
Superior customer service is the service that exceeds the expectation of the customer
and will make the business stand out from competitors. To be effective and efficient,
customer service must be consistently good in every part of the organization. In order
to build superior customer service into your business, you need to develop a business
vision that reflects your commitment to good customer service and let your customer
know about it by incorporating customer service strategies into your business and
marketing plan.
One thing that is to be kept in mind is the finding new customer is much more
expensive than retaining existing one. Customer service is more than just keeping
customer happy. But it is about revenue, because a lost customer means loss of
revenue and incurred expenses in making new customer and unhappy customer can
damage the image and reputation of the business as a whole.
Telephone Handling
Maintaining the record of total number of the cheque requisition issued by the
type of the account being open and verify with the original one.
Providing the bank statement to the customers to see their transactions being
taken place.
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A) Deposits
Providing information regarding deposits is one of the ways of counseling the
customers. Moreover, handling the customers with care is also equally important.
There are various kinds of product provided by Seepadole branch. Various kinds of
deposit facility available at Seepadole branch are as follows:
1. Saving account
E-zee saving
E-zee students
Pariwar bachat
Normal savings
Lotus savings
Afnai bachat khata
Keta keti bachat khata
Saving bonanza
2. Fixed account
3. Current account
4. Call deposit
B) Credits
A contractual agreement which a borrower receives something of value now and
agrees to repay the lenders at some later date. Any time when an individual finances
something with a loan (such as an automobile or a house), they are using credit in that
situation. Also credit refers to the borrowing capacity of an individual of company.
The various loan provided by the seepadole branch are:
Home Loan
Vehicle Loan
Bank overdraft
Remittance
Trade finance
Utility payment
Lockers
Automated Teller Machine (ATM)
College and school payment
Evening counter
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Only by the mentioning the steps may not be understandable to every customer or
others. So by the following figure the process of account opening can be more clearly
understood to everyone.
Fill
New Customer
Application
Form
Provides to
Staffs of CSD
department
Reject
Makes
No
Verified by
Head of
CSD
department
Yes
Accept
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System (Finacle)
Fig 4.2: Diagrammatic presentation of account opening process at NIBL (Seepadole Branch)
Certified True copy of Valid Visa other than Tourist Visa and Entry Stamp.
Certified True copy of Valid Visa other than Tourist Visa and Entry Stamp
B. Business A/C
1. NPR Account of Company (Registered in Nepal)
Certified true copy of board resolution for opening and operation of account.
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33
Request Letter to open the A/C signed by all partners mentioning opening and
operation of account.
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shredded.
Reason for account closing is received.
To the extent possible, authorized signatory should be asked to visit the bank
in personal.
Instead of closing the account, a customer can also shift his/her account. NIBL has
provision of shifting between different types of saving account. The customers can
change the scheme from lower minimum balance to higher minimum balance account
but if they want to change the scheme from higher minimum balance to lower
minimum balance then certain charge should be given to bank. The charge of scheme
change from higher minimum balance to lower minimum balance is lower than that of
closing the account i.e. Rs 300.
status of the account. The bank provides the statement only to the account holder after
they fill up the form and submitted to CSD. After the statement is provided to the
customer, the form is kept in the statement issue file in CSD which is done by
internee.
are passed to other department and rest should be handled by self by answering those
calls and providing them solution.
4.4.2 Providing balance statement
Balance statement shows complete transaction of a customer of deposits, withdrawals
and final balance. These are confidential information so statements are provided only
to the account holders, in case of any organizations letter mentioning about providing
balance statement along with companys stamp are must. Internee helps in providing
balance statement to the customer in the supervision of seniors. Customers can
produce their balance statements from any branches of NIBL.
4.4.3 Recording Cheque book issue, debit card issue
In bank there are various books maintained which may be related to cheque book
issue, debit card issue, for birthday cake etc. These books are filled up by internee for
future reference of the activities. It is the duty of the internee to record the cheque
book issue and debit card issue everyday.
Internee provides information about various products and services to the customers.
Thus in a sense, Customer Service, is an information desk which provides information
to the customers.
4.4.7 Fill up the cash/cheque deposit voucher
It is not necessary that all customer of bank are educated. Many uneducated people
are also the customer of bank who doesnt know to fill up the cash/cheque voucher.
So to fill up that voucher they search for internee service. Most of time internee is
busy in filling up the cash/cheque deposit voucher.
4.4.8 Issue of Debit card
For getting new debit card customer has to fill up a form and has to pay Rs 250. After
arriving the debit card from card department of NIBL, CSD issue it to the concern
customer after verifying properly.
4.4.8.1 Responsibilities Assigned and Discharged in Card Processing:
Creating a card and making it available to customers consisted of a stepwise process.
The internee got an opportunity to observe each step thoroughly and take active
participation in those steps. The different responsibilities that the internee had
undertaken during the internship related to card issue are as follows:
i) Receiving, Recording and filing Application forms of debit card
The account holders who want to have the debit card fill up the application form in
CSD. For the recording of these forms Finacle is used by the staff. After that the data
input to Finacle are verified by concern authority. These forms are send to card center.
Internee helps the customer to fill up the form of debit card.
ii) Scanning
Scanning is the only job which is not done by the staffs but done by interns. Scanning
of the photographs and signature in the form is necessary since these are to be
embossed in the Debit card. While providing the card, verification is done by looking
at the photo and the signature in the card.
iii) Providing cards and pin code to customers
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Internee searches the card in the boxes as ordered by senior as per the serial number
given to the card. Then internee record issue of card in card issue book and provided
cards and pin code to the customers.
4.5 Felt/observed gap:
Knowledge gained from the academic courses seemed to be totally difference in
practice. Although there is huge gap between theory and practice, concept of theory is
essential in the workplace. Literature is the base to perform any task in the working
environment. Socio-Cultural factors, interpersonal relationship seems to be simple in
theory but in the practice maintaining interpersonal relationship and mixing with
society is crucial task. Dealing with various kinds of customers effectively can be
sharpen through the practice. Depth knowledge from book about customer
relationship cannot be as effective as that in practice.
CHAPTER FIVE
5.1 Conclusion
Even though Nepal is one of the least developed countries in the world, banking
business is rapidly developing. Banking sector plays an important role in
commencement and development of industry. Therefore there is growing need for the
development of the financial institutions in the country which may be fulfilled by
banks. Nepalese financial system, basically banking business, has broadened in
number and diversified in modern financial instrument
NIBL has customized its services according to the needs and wants of the customers.
Majority of the customers are satisfied with the services provided by NIBL. The
major reason behind it was cooperative and responsive staff.
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From above analysis it is clear that NIBL is one of the well established and leading
commercial bank of Nepal which aims to serve its valued customers through quality
and advancement of its services throughout the nation. The bank is widely providing
its financial services through largely extended network. During internship period,
Intern got an opportunity to gain an in depth knowledge of the banking sector and
scrutinize its various aspects. Internship favored him to get the practical acquaintance
of the bank and its overall operation system. Intern observed the functional activities
of CSD and understood the corporate culture. Prior to internship, him knowledge was
limited within the books. At NIBL Intern was fully guided by all the staff in acquiring
the practical knowledge. It not only provided him the experience of functional
activities but also to let him know about the informal organizational relationships. The
internship added sense of responsibility to him while performing any task. The
experience of internship was incredible which boosted his confidence level and
enhanced his inter-personal communication skills. It developed interaction skills and
shaped up his personality too.
Therefore, intern is very much pleased to conclude that NIBL is one of the best banks
with friendly environment and excellent customer service.
Learn basic activities and operations of CSD and its role in overall functioning
of a bank.
Learn to use theoretical knowledge into practical working environment.
Learn to deal with various type of customers.
Learn the importance of the time management and the need of the
communication skills.
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accounts.
Learn the importance of inter-personal communication skills in professional
life.
Learn the procedures of filing and indexing of different document.
Learn working system of various other departments of the bank.
Learn the activities related in issuing cheque, issuing ATM cards, phone
handling etc.
Learn that one should not only know to attract a customer but also should be
able to retain them.
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